St. Landry democrat., 1887-12-17
THE SURPLUS.
PRESIDENT CLEVELAND SAYS 1T
MUST BE REDUCED.
His Annual Message to Congress-Wool
and Other Articles Recommended to be
Placed on the Free List-The Reduction
Should Take Precedence of Everything.

should rake FTeceUehCC o1 everything
Promptly at noon of the second days ses-
sion of the Fiftieth Congress President Cleve-
land sent his annual message to the Senate
and House. The galleries of each body were
crowded with people. The text is as follows ::
To the Congress of the United States:
You are confronted at the threshold of
your legislative duties with condition of
the national finances which imperatively de-
mands immediate and careful consideration
The amount of money annually exacted
through the operation of present laws, from
the industries and necessities of the people,
largely exceeds the sum necessary to meet
the expenses of the government.
When we consider that the theory of our
institutions guarantees to every citizen the
full enjoyment of all the fruits Of his industry
and enterprise, with only such deduction as
may be his share toward the careful and eco
nomical maintenance of the government
which protects him, it is plain that the ex-
action of more than this is indefensible ex-
tortion, and culpable betrayal of American
fairness and justice. This wrong inflicted upon
those who bear the burden of national taxa
ton, like other wrongs, multiplies brood OF
evil consequences. The public treasury,
which should only exist as a conduit con-
veying the peoples tribute to its legitimate
objects of expenditure, becomes boarding
place for money needlessly withdrawn from
trade and the peoples use, thus cripphng
our national energies. suspending our coun-
try's development, preventing investment IN
productive enterprise, threatening financial
disturbance, and inviting schemes of public
olunder.
This condition of our treasury is not alto
sether new; and it hos more than once of
or boan aI n the npnnlp'S
entatives in the Congress, who alone can
apply q remedy. And yet the situation still
Continues with aggravated incidents, more
han ever presaging financial convulsion and
widespread disaster. 1t will not do to ne
elect this situation because its dangers are
monet the less certainly, and await the unfore-
seen and unexpected occasion when suddenly
they will be precipitated upon us.
On the 30th day of June, 1885, the excess
of revenues over public expenditures after
complying with the annual requirement OF
the sinking-fund act was S17, ,S59, 1856 "a; dur
ing the year ended June 80, 1886, such excess
amounted to $40, ,4O5, ,545 20, and during the
year ended June 30, 1887, it reached the sum
Of S55, SCI. $40 81. The annual contributions
to the sinking fund during the three years
above specified amounted in the aggregate
to S137, ,05S, 3204, and deducted from the sur
plus as stated, were made by calling i'll for
ludI OutStd1lIlllS JhIeS pei NClil.
bonds of the government.
During the six months prior TO June 30,
1887, the surplus revenue had grown so large
by repeated accumulations, and it was feared
The withdrawal Of this great sum of money
needed by the people, would so affect the
business of the country, that the sum OF
s79,894, 100 of such surplus was applied to the
payment of the principal and interest of the
three per cent. bonds still outstanding, and
which were then payable at the option of
The government.
The precarious condition of financial af
fairs among the people still needing relief,
Immediately after the 3Oth day of June, 1877,
;he remainder of the three per cent. bonds
then outstanding, amounting with principal
and interest to the sum of SIS, 800, were
called in and applied to the sinking-fund
contribution for the current fiscal year. Not
withstanding these operations of the Treasury
Department representations of distress in
business circles not only continued but in
creased, and absolute peril seemed at hand.
In these circumstances the contribution to
the sinking fund for the current fiscal year
was at once completed by the expenditure of
S27, ,684 283 55 in the purchase of government
bonds not yet due, bearing four and four
and one-half per cent. interest, the premium
paid thereon averaging about twenty-tOur
per cent. for the former and eight per cent
for the latter. In addition to this the inter
est accruing during the current year upon
the outstanding bonded Indebtedness of the
government was to some extent anticipated,
and banks selected as repositories of public
money were permitted to somewhat increase
the deposits.
While the expedients thus employed to re-
lease to the people the money lying idle in
the treasury served to avert immediate
danger our surplus revenues have continued
to accumulate, the excess for the present
year amounting on the 1st day of December
to S55, ,25S, ,7O1 10, and estimated to reach the
sum of $113,000,0O0 on the Both of June
next, at which date it is expected that this
sum, added to prior accumulations, will
swell the surplus in the treasury to S140,-
100000.
There seems to be no assurance that, with
such withdrawal from use of the peoples
circulating medium, our business commun-
ity may not in the near future be subjected
to the same distress which was quite lately
produced from the same cause. And while
the functions of our national treasury should
be few and simple, and while its best condi-
ton would be reached,,I believe, by its entire
disconnection with private business inter-
ests, yet when, by perversion of its pur-
poses, it idly holds money uselessly sub
tracted from the channels of trade, there
seems to be reason for the claim that some
legitimate means should be devised by the
government to restore in an emergency, with
OUT WdSuS VI ouSlA AAollCS W loo
place among the people.
If such an emergency arises there now
exists no clear and undoubted executive
power of relief Heretofore the redemption
of three per cent. bonds which were paya-
BILE at the option of the government has
afforded means For the disbursement of the
excess of our revenues; but these bonds
have all been retired, and there are no bonds
outstanding the payment of which we have
the right to insist upon. The contribution
10 the sinking fund which furnishes the
occasion for expenditure in the purchase of
bonds has been already made for the current
year, SO that there is no outlet in that direc-
ton.
In the present state of legislation the only
pretense of any existing executive power. to
restore, at this time, any part OF our surplus
revenues to the people BY. its expenditure
consists in the supposition that the Secretary
of the Treasury may enter the market and
purchase the bonds of the government not
Yet due, at a rate of premium to be agreed
upon The only provision OF law from
which such a power could be derived is
found in an appropriation bill passed num-
Der Of years ago; and it is subject to the sus,
picion that it was intended as temporary and